Former Coinbase executive Balaji Srinivasan holds a strong aversion towards the U.S. Federal Reserve, expressing his views on the social media platform X. According to Srinivasan, the Fed’s monetary policy is highly unpredictable compared to the predictability of Bitcoin’s monetary policy.

Srinivasan emphasizes the predictability of Bitcoin’s issuance by stating that if a graph were to be created comparing the predicted issuance of Bitcoin over the last 15 years with its actual issuance, the two would perfectly align. He believes that this predictability is just as important as the scarcity of the currency itself.

The former Coinbase chief technology officer believes that the Fed brings about risks to the markets. He claims that all the unpredictability and volatility in the market stems from the decisions made by the Fed committee. Srinivasan criticizes the committee for arbitrarily selecting interest rates based on outdated data and political incentives.

Not only is Srinivasan critical of the Fed, but some elected US politicians share his concerns and aim to limit the central bank’s power. Recently, the House of Representatives passed a bill, sponsored by Republican Majority Whip Tom Emmer, known as the CBDC Anti-Surveillance State Act, which would prevent the Fed from launching a central bank digital currency (CBDC) without Congressional authorization. Emmer’s intention behind this legislation is to safeguard Americans’ right to privacy.

Fed Chair Jerome Powell, on the other hand, has stated that the agency is currently not considering or adopting a CBDC, emphasizing that they are far from making such a recommendation.

In conclusion, Srinivasan and Emmer’s criticisms of the Fed highlight concerns about its unpredictable monetary policies and its potential impact on the markets. However, Powell’s statement suggests that the Fed is not currently moving towards the adoption of a CBDC.